ONLINE REVENUE MODELS IN THE INTERNET AND MEDIA SECTOR

Undergraduate

ABSTRACT

Internet has changed the strategic and commercial possibilities for a lot of organizations in the media sector drastically. An example is the change for the publishers. Democratization of the content production and free availability of information are key words. For many publishers raises the questions on how they need to react to the initiatives of the internet. The medium is new but moreover; the economical natural law is new and asks for a new way to deal with. There is a lack of knowledge with the publishers on this subject in order to act adequately. Other organizations also deal with changes and innovations regarding the internet. New ways of generating turnover are being developed. There are a lot of online revenue models nowadays, but a lot of organizations are not making the most of them. For that reasons this research is executed with the following problem formulation:

“What are the most promising innovative online revenue models, their critical success factors, and how are they being used by organizations in the internet and media sector?”

In this 6-months research, a literature study is done and 20 in-depth interviews are completed in order to find an answer and draw conclusions to the problem definition. Out of the literature study the following theoretical framework is developed:


                         INTRODUCTION OF THE RESEARCH

 Reason for this research

The rise of the internet has brought the media sector a lot of new opportunities but also challenges. In the past, publishers with daily papers or magazines could raise income on subscribers and advertisers. In the last decade the media sector is subject to revolution and change. The paper was a (regional) authority, subscribers were members of the papers, there were simple choices for media planners and regional advertisers, and the labor market, brands and services were moneymakers. But nowadays there is overkill on (news)media and therefore choices. There is not a lot of authority, subscribers are still coming, but more subscribers are going. Online is taking over the market. On the internet, users rarely pay for the content. New players like Google introduce totally new, innovative advertising concepts and revenue models. These new organizations in the internet sector are pulling a lot of turnover towards themselves. Even the publishers are starting to get widely present with all kinds of sites. They also start using more innovative income flows. It is clearly a learning process where all these organizations are in at the moment.

How do organizations in the internet and media sector really need to act on this trend? In the media you can read that they are using more and more innovative online revenue models. Are they using the full potential of these online revenue models? Does it produce a lot of turnover? Are there certain success factors at this moment for implementing online revenue models? These are only a few questions that this research is trying to solve.

This research encloses an analysis of the different innovative online revenue models that exist, what their critical success factors are, and the degree in which they are being used by the different organizations in the internet and media sector. The research exists out of sources analysis’s like in-depth interviews with publishers & internet organizations. An intensive literature study has also been done on online revenue models and business models of organizations in the internet and media sector. This will give insight in the current and future situation of these organizations.